Your balance sheet–don’t forget to balance it

By Peiying Peng & Liz Zed

Not even CPAs like to balance their own balance sheets (I have asked and they’ve told me). But its importance cannot be overstressed. Your balance sheet itself does not bring in income, but without it, you won’t ever make it to the rank. That goes without saying.

You might have kept a balance sheet for years. But you are reading this article right now, because you probably are not sure if you have done everything correctly. Don’t worry, this can be relatively painless.

Here is the check list for you to utilize for preparing your current balance sheet:

Income

All sources coming in monthly including W2, 1099, grants, passive, proprietorship or corporate.

Expenses

All monthly outflow including food, shelter, clothing, utilities, gas, maintenance, phone, credit cards, insurance

Assets

All appreciating real goods such as property, certain collectibles, precious metals, stocks & bonds, and certain depreciating goods such as expensive recreational ‘toys’

Liabilities

Mortgage balance, credit card balance, accounts payable.